Start a Property Management Company in Oklahoma | 2024 Guide

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Oklahoma Property Management Company

Are you considering starting a property management company in Oklahoma? Property management is an excellent business opportunity for individuals with a passion for real estate who are detail-oriented and can effectively manage multiple tasks simultaneously. The demand for property managers continues to grow, making it an attractive and lucrative Limited Liability Company in Oklahoma.

Webinarcare Editorial Team will help you gain knowledge through thorough research and market study. Before Starting a Property Management Company in Oklahoma, all the steps in this article must guide you.

How to Start a Property Management Company in Oklahoma

What is a Property Management Company?

A property management company in Oklahoma is a professional firm that handles the administration of residential, commercial, or industrial real estate. Such companies deal with all aspects of managing a property, from finding and vetting tenants to repairing and maintaining the property, collecting rent, and handling tenant issues. These companies are an asset for property owners who may not have the time or expertise to manage their properties effectively and efficiently.

Forming a Limited Liability Company (LLC) can be a strategic decision for those considering starting a property management company in Oklahoma. Starting an LLC provides several benefits, including the protection of personal assets. In an LLC, the owner’s assets are protected in case of any litigation or debt incurred by the company. It also offers greater credibility and potential tax advantages and allows for an easy ownership transfer. Starting an LLC involves filing the necessary paperwork with the Oklahoma Secretary of State and paying an initial filing fee.

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How to Start a Property Management Company in Oklahoma

Starting a property management company in Oklahoma can be a lucrative and rewarding business venture especially if you are in Oklahoma City. With the right planning, resources, and dedication, you can create a successful company that caters to the needs of property owners and investors in your area. Here is the step-by-step guide to launching a property management company in Oklahoma.

Step 1: Understand Property Management

Property management oversees and operates real estate properties, including residential, commercial, and industrial properties. The role of a property manager is to manage the day-to-day activities of properties, ensuring that they are well-maintained and that rent is collected on time. Property managers also deal with tenant issues, repairs and maintenance, and marketing vacant properties.

Step 2: Evaluate The Market

Before starting a property management company in Oklahoma, you need to evaluate the local market to determine if there is a demand for your services. Here are some factors to consider:

  • Type of Properties: Determine the properties in Oklahoma, such as single-family homes, multi-family buildings, commercial properties, or vacation rentals.
  • Competition: Identify other property management companies and analyze their services, pricing structures, and market share.
  • Market Trends: Research the local real estate market trends, including rental rates, vacancy rates, and property values.
  • Potential Clientele: Determine the number of property owners and investors in your target area who may require property management services.

Step 3: Create a Business Plan

A solid business plan is crucial for the success of your property management company. Your business plan should include the following elements:

  • Executive Summary: A brief overview of your Oklahoma property management company, including its mission statement, goals, and objectives.
  • Market Analysis: A detailed analysis of the local real estate market, competition, and potential clients.
  • Services: Describe the property management services you plan to offer, such as tenant screening, rent collection, property maintenance, and marketing.
  • Marketing Strategy: Outline your marketing plan, including your target audience, marketing channels, and budget.
  • Financial Projections: Provide financial projections for your property management company, including revenue, expenses, and projected profits.

Step 4: Register Your Business and Obtain Licenses

To start a property management company in Oklahoma, you must register your business and obtain the necessary licenses and permits. Here are the steps to follow:

Choose a Business Structure

For starting a property management company, several business structures are available in Oklahoma. Each structure has its benefits and drawbacks, depending on your business goals, financial situation, and personal preferences. The common business structures you can choose from are:

  • Sole Proprietorship: This is the simplest business structure, which involves a single individual owning and operating the property management company. The owner has complete control over the business and is personally responsible for all debts and liabilities. There is no formal registration process for a sole proprietorship, but you may still need to obtain licenses and permits specific to property management.
  • Partnership: A partnership is a business structure where two or more people share ownership of the property management company. Partnerships can be general, limited, or Oklahoma Limited Liability Partnerships (LLP). Each partner contributes to the business and shares in profits and losses. Partnerships must file a partnership agreement with the Oklahoma Secretary of State and obtain necessary licenses and permits.
  • Limited Liability Company (LLC): An LLC is a hybrid entity that combines a partnership’s flexibility with a corporation’s limited liability protection. Owners, known as members, are not personally responsible for the company’s debts and liabilities. To form an LLC in Oklahoma, you must file the Articles of Organization with the Oklahoma Secretary of State and comply with any licensing and permitting requirements.
  • Corporation: A corporation is a separate legal entity from its owners, known as shareholders. Corporations offer limited liability protection and can issue stock to raise capital. There are two types of corporations: C Corporations and S Corporations. Forming a corporation in Oklahoma requires filing the Certificate of Incorporation with the Oklahoma Secretary of State.
  • Professional Corporation (PC): This type of corporation is designed specifically for licensed professionals, such as real estate brokers, who wish to form a corporation for their property management company. Professional Corporation offers limited liability protection and must comply with all state regulations for the specific profession. To form a Professional Corporation in Oklahoma, you must file the Certificate of Incorporation with the Oklahoma Secretary of State and adhere to any licensing and permitting requirements.

Before choosing a business structure for your property management company in Oklahoma, consult with a Business Attorney in Oklahoma to discuss the best option for your situation. Remember that each structure has its tax implications and requirements, so it is essential to understand your choice’s financial and legal ramifications.

Choose a Business Name

Choosing a business name for your Oklahoma property management company is important to establish your brand identity and attract potential clients. Here are a few suggestions to consider:

  1. Oklahoma Premier Property Management
  2. Oklahoma HomeGuard Property Services
  3. Oklahoma Nexus Property Management
  4. Oklahoma BlueSky Property Solutions
  5. Oklahoma KeyPoint Property Management

Remember to check the availability of your chosen business name with the Oklahoma Secretary of State Business Entity Search and ensure it’s not already in use by another company. There is a complete guide on Oklahoma Business Name Search for you to have a property management company name. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for Oklahoma DBA (doing business as). 

However, before filing a DBA, you should know that you need to renew your DBA every Indefinite, which costs $25.

Once you’ve settled on a unique name, you can hire a Registered Agent and obtain the required licenses and permits.

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Hire a Registered Agent

A Registered Agent is a person or entity designated to receive important legal documents and correspondence for your business. In Oklahoma, every business entity, such as an LLC or a corporation, must have a Registered Agent with a physical address within Oklahoma. The Registered Agent’s primary role is to ensure that your business complies with state regulations and be available to receive any legal notices or official government correspondence.

In Oklahoma, the cost of having a Registered Agent ranges from $50 – $150. However, suppose you are still wondering how to hire a Registered Agent. In that case, you can also serve as your Registered Agent, appoint a friend or family member, or hire the Best Oklahoma Registered Agent Services.

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File For Articles of Organization or Certificate of Incorporation

If you form an LLC for your Oklahoma property management company, you must file the Oklahoma Articles of Organization, which costs $100. However, you must file the Certificate of Incorporation if you form a Corporation for your Oklahoma property management company. The Certificate of Incorporation filing fee costs $25 for online, by mail filing or in person filing.. It is crucial to provide accurate and complete information on this document, as errors or omissions may result in delays or rejection of your filing.

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Obtain an Employer Identification Number

You must first obtain an Employer identification number (EIN) in Oklahoma from the IRS if you will open a bank account or hire an employee for your Oklahoma property management company. 

The application of an EIN in Oklahoma can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Get the Necessary License and Permits

When starting a property management company in Oklahoma, you must obtain legal licenses and permits. Here are some common licenses and permits you may need:

  • Business License: Oklahoma requires businesses to obtain a Business License to operate legally. The business license fee in Oklahoma ranges from $50 – $300.
  • Real Estate Broker License: In many states, property management companies must have a licensed real estate broker or designate a licensed broker to oversee the business operations. Check with your Oklahoma Real Estate Commission or similar governing body for the requirements and application process.
  • Salesperson License (if applicable): If your Oklahoma property management company also engages in leasing or renting properties, you may need to have a licensed salesperson working under the supervision of a licensed broker.
  • State Tax Registration: Register with the Oklahoma Tax Commission to collect and remit sales and use taxes and other applicable state taxes.
  • Local Zoning and Land Use Permits: Depending on the nature of your Oklahoma property management services and the location of your office, you may need to obtain zoning and land use permits. 
  • Workers’ Compensation Insurance: If you have employees, you’ll likely need to obtain workers’ compensation insurance by Oklahoma’s laws.
  • Professional Liability Insurance: Oklahoma property management companies should consider obtaining professional liability insurance (errors and omissions insurance) to protect against potential legal claims related to business operations.

Before starting your property management company, consult a Business Attorney in Oklahoma to ensure you obtain all the necessary legal permits and licenses. Failing to do so can result in fines, penalties, and even the closure of your Oklahoma business.

Step 5: Set Up Your Office

While starting a property management company without a physical office is possible, having a dedicated workspace can help establish your credibility and professionalism. Select a location that is convenient for both you and your clients. This may be a home office, a co-working space, or a commercial office space. Also, you will need basic office equipment such as a computer, printer, phone, and filing system.

Step 6: Market Your Property Management Company

Effective marketing is crucial for attracting clients and growing your Oklahoma property management business. Usually, the best way to market your property management company is to advertise in local newspapers, real estate magazines, and direct mail campaigns.

Step 7: Build a Team

As your property management company grows in Oklahoma, you may need additional staff to help manage your workload. Consider hiring property managers, administrative assistants, maintenance technicians, and marketing professionals. Ensure your team is knowledgeable, professional, and committed to providing excellent customer service. However, before hiring an employee for your Oklahoma property management company, you should obtain an EIN and open a bank account.

Benefits of Starting a Property Management Company

There are several benefits of starting a property management company in Oklahoma:

  • Steady Income: Property management is a growing industry in Oklahoma, and there is always a demand for qualified professionals to manage properties. This means starting an LLC property management company can provide a steady income stream.
  • Low Startup Costs: Starting a property management company requires minimal investment, as you do not need to purchase any property. You can start with just a few clients and gradually increase your portfolio.
  • Flexible Work Schedule: Property management companies offer flexible work schedules, allowing you to work around other commitments such as family and other business ventures.
  • Growth Opportunities: With the right marketing strategies, you can rapidly grow your property management company and increase your client base.
  • Diverse Client Base: Property management companies cater to a diverse range of clients, including landlords, tenants, and property owners. This means that there is always a demand for your services.

FAQs

Can anyone start a property management company in Oklahoma?
Yes, anyone can start a property management company in Oklahoma as long as they meet the state’s requirements.
What are the licensing requirements for property management companies in Oklahoma?
Property management companies in Oklahoma must obtain a real estate broker’s license.
What is the process for obtaining a real estate broker’s license in Oklahoma?
The process for obtaining a real estate broker’s license in Oklahoma involves education and experience requirements, passing a licensing exam, and submitting an application with fees.
How much does it cost to obtain a real estate broker’s license in Oklahoma?
The cost of obtaining a real estate broker’s license in Oklahoma varies, but expect to pay several hundred dollars in fees.
Is continuing education required to maintain a real estate broker’s license in Oklahoma?
Yes, continuing education is required for real estate brokers to maintain their license in Oklahoma.
What are the education requirements for Oklahoma real estate brokers?
To become a real estate broker in Oklahoma, you must have a high school diploma or equivalent, have completed 90 classroom hours of pre-license coursework, and have at least 2 years of full-time experience as a real estate sales associate.
Can a property management company manage properties in multiple states from its Oklahoma-based office?
Yes, a property management company based in Oklahoma can manage properties in multiple states as long as it is licensed and registered to operate in each state.
Is it necessary to form a legal entity to start a property management company in Oklahoma?
Yes, it is recommended to form a legal entity when starting a property management company in Oklahoma for legal liability and tax purposes.
How long does it take to form a legal entity in Oklahoma?
The process for forming a legal entity in Oklahoma can take anywhere from a few days to several weeks.
Are there any tax benefits of starting a property management company in Oklahoma?
Oklahoma has a low business tax rate, which can benefit property management companies operating in the state.
Does Oklahoma offer any incentives for new businesses?
Yes, Oklahoma offers a range of incentives for new and expanding businesses, including tax incentives and grants.
What type of insurance should a property management company have in Oklahoma?
Property management companies in Oklahoma should have liability insurance, worker’s compensation insurance, and errors and omissions insurance.
What should a property management company charge for its services in Oklahoma?
The fees that a property management company charges for its services in Oklahoma vary, but typically range from 8-12% of the monthly rent.
Is it necessary for a property management company to have a physical office in Oklahoma?
Yes, a property management company in Oklahoma must have a physical office in the state.
What are the most common legal issues faced by property management companies in Oklahoma?
The most common legal issues faced by property management companies in Oklahoma include fair housing violations, breach of contract, and landlord-tenant disputes.
How can a property management company best market its services in Oklahoma?
A property management company in Oklahoma can best market its services by establishing a strong online presence, networking with other real estate professionals, and providing exceptional customer service.
Is Oklahoma a landlord-friendly state?
Yes, compared to other states, Oklahoma is usually considered a landlord-friendly state.
Is it necessary for a property management company to have a real estate license in addition to a broker’s license in Oklahoma?
No, property management companies in Oklahoma only need to have a real estate broker’s license.
Can a property management company also provide real estate sales services in Oklahoma?
Yes, as long as the company holds a real estate broker’s license.
Is property management considered a real estate service in Oklahoma?
Yes, property management is considered a real estate service in Oklahoma.
What are the biggest expenses for a property management company in Oklahoma?
The biggest expenses for a property management company in Oklahoma are usually payroll, insurance, rent, and marketing costs.
Does Oklahoma have any unique property management laws?
Yes, Oklahoma has unique landlord-tenant laws and regulations that property management companies must adhere to.
What should a property management contract in Oklahoma include?
A property management contract in Oklahoma should include terms for services, fees, and responsibilities for both the management company and property owner.
Is it necessary for a property management company to provide tenant screening services in Oklahoma?
While not required, providing tenant screening services can offer value to property owners and ensure tenants are of good qualification.
What technology should a property management company use in Oklahoma?
Property management companies in Oklahoma should use property management software, online payment portals, and digital marketing tools.
How can a property management company in Oklahoma grow its business?
A property management company can grow its business as they add more customers, expand their services, invests in digital advertising tools, and deliver exemplary customer service.
Are there any local associations or organizations for property management professionals in Oklahoma?
Yes, Oklahoma has local associations and groups for real estate and property management professionals, for networking, continuing education, and informative seminars.
Should a new Oklahoma property management company outsource its accounting services?
Many small property management businesses outsource their accounting and administrative processes to cut the overhead cost and comply with local tax regulations.
What are the growth prospects for a property management company in Oklahoma?
The property management industry is expected to grow and expand in Oklahoma in 2021 and into the future due to the number of real estate investment opportunities available.
What permits and licenses do I need to start a property management company in Oklahoma?
You will need to obtain a real estate license from the Oklahoma Real Estate Commission and register your company with the Oklahoma Secretary of State.
Is there any minimum education requirement to become a property manager in Oklahoma?
You will need to complete approved pre-license education from a real estate school and pass the licensing exam offered by the Oklahoma Real Estate Commission.
What is the typical fee structure for property management services in Oklahoma?
Fees can vary but it is commonly set as a percentage of the rent collected from the tenants with a leasing fee charged at the beginning of the lease term.
Are there any laws I should be aware of as a property manager in Oklahoma?
Make sure to comply with the Fair Housing Act and Oklahoma Landlord Tenant Act, as well as any local city ordinances.
Do I need to have prior property management experience to start a property management company in Oklahoma?
While prior experience is not required, it can be helpful in establishing a successful property management company.
How can I market my property management services in Oklahoma?
There are many ways to market your services, including social media, flyers, ads on rental listing websites, and networking.
Is it necessary to maintain an office space to run a property management company in Oklahoma?
Yes, having a physical office space can provide a professional image and a space to meet clients.
Are there any Oklahoma-specific tenant screening laws I should be aware of?
Yes, Oklahoma landlords may not discriminate against tenants based on their sexual orientation or gender identity.
What is the typical lease term for rental properties in Oklahoma?
The standard lease term is one year, but lease agreements can be customized to fit the needs of the landlord and tenant.
Are there any specific rental regulations I should be aware of regarding water and gas heating systems?
Landlords are required to keep heating and cooling systems in good working order but it is recommended to have leases that specify the tenant’s responsibility for services like water, gas or other municipals in monthly fees.
Are there any insurance requirements for property management companies in Oklahoma?
While not mandatory, it is recommended that property management companies have liability insurance and errors and omissions insurance to protect themselves from potential lawsuits.
How can a property management company handle evictions in Oklahoma?
It is important to follow the legal procedures outlined in the Oklahoma Landlord Tenant Act and to seek legal advice if eviction proceedings become necessary.
What should I do if my tenants are consistently delinquent with rent payments?
Consider implementing a strict late payment policy and, if necessary, take legal action to enforce lease terms.
Are there any tax incentives in Oklahoma for property management companies?
Some property management expenses can be tax deductible, but it is recommended to consult with a tax professional for specific advice.
What kind of support services can a property management company use in Oklahoma?
There are many services and resources available, such as accountants, software providers, marketing agencies, and legal advisors.
Can property management companies take care of maintenance tasks in Oklahoma?
Yes, property management companies can handle maintenance tasks and repairs, either by doing the work themselves or by contracting outside work.
Are there any regulations concerning security deposits for rental units in Oklahoma?
Landlords must provide a written rental agreement and a written statement of the tenant’s security and pet deposits following immigration law.
Do property management companies require an emergency maintenance crew?
It is important to have a plan in place for emergency maintenance situations, such as plumbing emergencies, power outages, floods or tornado warnings.
Is the Oklahoma Property Owners Association tax-exempt?
The Oklahoma Property Owners Association is not tax-exempt but it may be able to deduct certain expenses related to organizing its own meetings.
Should property management companies keep separate bank accounts for security deposit payouts?
It is recommended to keep separate banking accounts for security deposits, lease payments and for company upkeep.
What are the prohibited practices by both renters and landlords in Oklahoma?
Prohibited practices by renters include intentionally providing false or misleading rental information whereas prohibited practices by landlords include reading mail, withholding rent without eviction documents etc.
How can property management companies build rapport with property owners in Oklahoma?
By serving as a trustworthy professional and working with property owners’ interests and priorities in mind and providing excellent communication to the interested party from another state.
Is it legal to charge late fees on rent payments in Oklahoma?
Yes, landlords can charge late fees as long as it is stated clearly in the lease agreement however it is also suggested to shorten any dispute on collectables through negotiation before passing it over to the authorities.
What is a reasonable amount of time for returning security deposits in Oklahoma?
According to the Oklahoma law, the landlord will need to return the deposit within 60 days of the occupancy had being vacated.
How can I obtain lead-based paint disclosure forms for rental units in Oklahoma?
You can get the form from online sources but is necessary for a professional property manager to ensure that this is done beforehand protects the owners risk locally or outside of Oklahoma.
How can I stay up to date with changes in property management laws in Oklahoma?
It is recommended to stay in contact with other landlords and attend events hosted by local housing associations and remain up to date with changing precedences or rulings furthered in court.
What is the Zoning Code in Oklahoma for starting a Property Management business and how to transition?
The zoning plan varies from city-to-city where you present yourself as a signposting agency which assures and prepares the homeowner for the end-to-end management of their properties instead of asking them to modify their homes just for the services’ ease of access.
Is there a clear procedure or guidelines for handing over a tenant placed security deposit to the landlord and any deductions?
Yes, as per regulations established by the Oklahoma Secretary of State, Act 6, Section 399F, landlords are required to deposit any security amount sent to the venue within five days, with a written statement on the same date in which a lump-sum sum has been deposited and notify the renters of any type of deduction contingent to any infringements and refunding any pending amounts within 15 days if not mentioned earlier than that to terminate.

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Conclusion

Starting a property management company in Oklahoma can be rewarding and profitable. By following the steps outlined in this guide, you can launch a successful property management business that meets the needs of property owners and investors in your area. Remember to stay up-to-date on industry trends and continually refine your services, marketing strategies, and customer service to ensure the long-term success of your property management company.

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